Sistema's sustainability report was named among the five best in the financial and investment sector at ESG Reporting Awards 2021.
The Corporation was the only Russian finalist in the nomination ‘Best Sustainability Reporting: Financials (Investment)’ alongside European and British asset managers and investment firms. The contest was organised by ESG Investing, а leading global media platform publishing news and features on ESG and sustainable investing for investment managers, institutional investors and listed companies. This includes the corporate sustainability reports.
Non-financial public reports that have been regularly prepared by Sistema during the last ten years are its main tool for disclosing material information about the Corporation's approaches to governance and the progress it achieved in key areas of sustainable development for the investment community and other stakeholders.
In 2020, determined to integrate ESG principles and best practices in the Corporation's operations, Sistema's Board of Directors for the first time approved a corporate Sustainability policy and included ESG criteria in the investment process. In 2021, Sistema adopted Environmental and Human Rights policies. These new ESG-documents define the Corporation's approaches to sustainability management and responsible investment, and serve as guidelines for portfolio companies. ESG matters are reviewed by the Sustainability and Investor Relations Committee of Sistema's Board of Directors.
Due to its active approach to disclosing ESG information, Sistema has been included in Russian and international sustainability indices (Moscow Exchange – RSPP, FTSE4Good) and holds high positions in a number of ESG ratings: MSCI ESG, CDP, RAEX-Europe, etc. According to the Sustainalytics, the Corporation demonstrated the lowest ESG risks-rating among Russian companies and was ranked 11th among 725 global diversified financial companies.
Sistema's transparency in ESG helps it to obtain additional financing. Notably, it received a Sustainability Improvement Loan from Sberbank, with the option to link the interest rate to sustainability performance. This was the first case of ESG financing provided by a Russian bank to a Russian borrower, putting Sistema at the forefront of responsible investing in Russia.
About the award
The ESG Reporting Awards is the only award assessing and recognizing the best in sustainability and climate-related reporting by listed companies of all sizes and across all industry sectors. All award entries undergo an initial shortlisting stage for each category before being assessed by a panel of independent judges comprising financial market professionals, academics and independent experts. The judges look for outstanding merit in ESG, sustainability and climate-related reporting and disclosure, examine company’s overall reporting strategy along with engagement and communication practices towards investors and stakeholders across all areas of corporate sustainability and climate change policy.